Wetherspoon Replaces PwC as their External Auditor
Pub giant JD Wetherspoon (JDW) has recently made an announcement regarding ending its 34-year long relationship with PwC as the company is set to replace big four firm with Grant Thornton as its external auditors once the audit of the financial year ended July 30, 2017 is completed by the PwC.
JDW has further said that the decision to appoint Grant Thornton as external auditor will be up for approval by the shareholders at the 2017 annual general meeting (AGM).
The company has revealed that Grant Thornton was selected to replace PwC as external auditors after a competitive tender process was conducted which was supervised by the company’s audit committee. In the light of the results of the tender process and what is better for the company going forward the audit committee recommended the name of Grant Thornton to be the new auditor of the company. The recommendation was then approved by JDW’s board. The details regarding the tender process will be incorporated in to the company’s 2017 annual report. It is said that Grant Thornton defeated KPMG to claim the external audit of JDW.
PwC will continue to work in their role as the external auditor of the company and will perform the external audit for the fiscal year ended July 30, 2017.
The company also said that it appreciates and thank PwC for the contribution they have made to JDW working in their role as auditor of the company.
As per JDW’s 2016 annual report, the company paid PwC a sum of £217,000, which comprised of £186,000 for audit services and remaining £31,000 for other services.
Only 27 audits in the FTSE 250 have been held by the same audit firm since before 1990.As per the European regulations that are effective from June 2016, the maximum period for which an audit firm can perform external audit of a listed company is 20 years while a listed company is required to conduct a competitive tender process every 10 years.